This study is focusing on RADIANT YACU Ltd in Rwanda, aimed to assess the relationship between financial literacy and micro-insurance demand. The study used both qualitative and quantitative approaches, adopting an exploratory design and employing the correlative technique. The study population comprised 237 individuals from the management team and stakeholders of RADIANT YACU Ltd. Data collection involved 149 respondents, selected through stratified and purposive sampling, using interviews and questionnaires. Statistical analysis, utilizing SPSS version 23.0 and Excel, employed descriptive and comparative research designs, with multiple linear regression models to establish relationships through econometric equations. The findings revealed significant impacts of financial knowledge, behavior, and attitude on micro-insurance demand. Financial knowledge demonstrated a 56.7% influence on micro-insurance demand (Pearson correlation = 0.567, p-value = 0.000). Financial behavior showed an 81.2% relationship with micro-insurance demand (Pearson correlation = 0.812, p-value = 0.000). Financial attitude exhibited a very strong correlation of 89.8% with micro-insurance demand (Pearson correlation = 0.898, p-value = 0.000). The regression model proved significant in predicting the relationship between financial literacy and micro-insurance demand (p-value = 0.000). The F-test model resulted in a positive value of 241.997, with a p-value of 0.000, rejecting null hypotheses and confirming that financial knowledge, behavior, and attitude significantly affect micro-insurance demand in Rwanda. In conclusion, the study recommends the implementation of targeted financial literacy programs in Rwanda to enhance understanding of insurance concepts and the benefits of micro-insurance. Collaboration with local organizations and government agencies is essential for reaching a broader audience and addressing the identified issues